Gift Annuity - Charitable Planned Giving

2008-12-03T09:37:00.000-08:00

Help Me Understand Charitable Gift Annuity

Real Estate with Causes has been answering this question quite frequently as of late. A Charitable gift annuity is a type of donation that is considered "planned giving". This is a way to arrange for the ultimate charitable donation upon your passing, and also a way that you can retain some profitability and financial benefit from gifted real estate property.

Charitable Gift Annuity—Giving And Getting

A charitable gift annuity is a long-term contract between parties; in the case of property donation, the parties involved in a charitable gift annuity are the charity that is receiving the property and the owner or owners of the property. When a charitable gift annuity is contracted, the donor transfers the rights to the property to the recipient charity. In exchange, the charity provides the donor (who is now called an annuitant or beneficiary) with a partial tax deduction and a recurring income payment (based on a percentage of the original principal on the property) for the remainder of the beneficiary or beneficiaries' life (lives). Under the right circumstances, a charitable gift annuity creates a win-win situation wherein the charity gains either use or income from the property and the beneficiary gains meaningful financial streams and tax benefits. In some situations the beneficiary can even retain use or partial use of the property while enjoying these financial benefits. Options In Charitable Gift Annuity Arrangements There are options for contracting a charitable gift annuity; these fall into three main structures.

Single Life Charitable Gift Annuity Under this sort of arrangement one person receives the complete payment and tax benefit for the remainder of his or her lifetime.

Two Lives, In Succession Under this arrangement, one person receives the whole annuity payment until his or her death, and if the second named beneficiary survives that person, payments transfer to him/her.

Joint and Survivor In this case, two beneficiaries are paid at the same time for both of their lifetimes. When the first person passes on, the remaining beneficiary receives full annuity payments until his or her death. This option is commonly chosen for married couples.

A charitable gift annuity is a financial vehicle that can and is frequently used to both ensure philanthropic giving at the time of death and to manage finances for the remainder of the life of the property owner. Charitable gift annuities solve many problems for many property owners, and are very beneficial to those who choose to utilize them. Contact Real Estate with Causes today to learn more about this philanthropic gesture made easy. Donate Real Estate

2006-07-26T14:42:00.000-07:00

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Great TAX BENEFITS!!

* If you have held the property for more than one year,
it is classified as long-term capital gain property.

You can deduct the full current market value of the donated property.

Excess contribution value may be carried forward for up to five years.
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The size of the tax deduction is determined by the current market value of the property as opposed to the cost of the property when it was purchased!

***By donating property instead of trying to sell it, donors also avoid paying broker fees!

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